(Bloomberg) -- Democratic Republic of Congo is set to receive nearly $2.9 billion in financing over the next three years after International Monetary Fund staff agreed to support two new loan programs with the Central African nation.
Congo will receive approximately $1.77 billion through a new Extended Credit Facility and $1.1 billion via the IMF’s Resilience and Sustainability Facility, which provides funds for climate-linked initiatives, according to an IMF statement Wednesday.
The new ECF loan program will focus on economic diversification, job creation, fighting poverty, and supporting better governance and transparency, Calixte Ahokpossi, IMF Mission Chief for Congo, said in the statement. The country successfully completed a major loan program with the Washington-based lender for the first time ever earlier this year.
Read: Congo Completes First-Ever High-Level IMF Loan Program
Congo is the world’s second-largest copper producer and the biggest source of battery mineral cobalt. It’s also home to the world’s second-largest rainforest, a key resource for capturing greenhouse gases.
The new climate financing will help the government protect its forests, build resilience to climate-induced natural disasters, and integrate “climate considerations into public investment management,” Ahokpossi said.
The ECF will also target improvement of Congo’s value-added tax system, “inefficient” tax exemptions, and help address rampant tax evasion by strengthening oversight of mineral exports, according to the IMF statement.
The programs are still subject to approval by IMF management and Executive Board, likely in January.
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